3, 4 12-49 Financial Ratios Consider the data for Ryan Company in Exhibit 12-15. Assume all sales are on credit. 1. Compute the following ratios for the years 20X2 and 20X3: a. Percentage of net income to stockholders' equity (ROE) b. Gross profit rate c. Percent of net income to sales d. Ratio of total debt to stockholders' equity (define total debt as total liabilities) e. Inventory turnover f. Current ratio g. Average collection period for accounts receivable 20X3 December 31 20X2 20X1 ncome usands) Cash $ 30 $ 25 $ 20 90 70 Accounts receivable Merchandise inventory Prepaid expenses 50 80 70 60 10 10 10 30 30 30 Land Building 70 75 80 60 50 40 Equipment Total assets Accounts payable $370 $330 $290 $ 50 $ 40 $ 30 Taxes payable Accrued expenses payable 20 15 10 15 10 5 Long-term debt 45 45 45 150 150 150 Paid-in capital Retained earnings 90 70 50 Total liabilities and stockholders' equity $370 $330 $290 Year Ended December 31 20X3 20X2 Sales (all on credit) $800 $750 Cost of goods sold 435 410 Operating expenses 305 295 Pretax income 60 45 Income taxes 20 15 Net income $ 40 $ 30